Publisher’s note: This article has been updated to specify that Jensen Huang mentions 1 dollars billion as the total addressable market of the Keynote GTC and does not explicitly declare that it is a forecast of pure and simple income.
Nvidia (Nvda -1.51%)) was one of the companies that have been in retirement of investors who poured the actions in the middle of the slowdown in the market. This should not surprise anyone since Nvidia has been one of the most efficient actions in recent years, and many investors have made huge unrealized gains. But there are still a lot of advantages for that, and I think that for the moment, could be an excellent purchasing opportunity.
The stock had phenomenal years in 2023 and 2024, and although 2025 looks a little trembling, I will not be surprised if it went up at the end of 2025.
NVIDIA GPUs feed the AI arms race
Nvidia has increased to become one of the best AI actions (if not the best) because it sells Graphic processing units (GPU) and the infrastructure to support them. GPUs are one of the most popular material options for the training of AI models because of their excellent computer capacity and their versatility.
GPUs can process several parallel calculations, which makes them incredibly fast to treat complex calculations. Although certain types of IT equipment can outperform them, this requires that the workload be configured in a specific way, which may not be possible depending on the situation.
Consequently, GPUs have become the reference option for many AI hyperscalers, including construction data centers. This led Nvidia to provide unprecedented growth figures for its size.
NVDA Revenue (TTM) data by Ycharts; TTM = dragged 12 months.
However, it is quite obvious that its growth seems to slow down (although the growth of income of 78% is nothing to sneeze). However, this is the main concern of the investor with the company: when will the power of sufficient computers be sufficient?
Recently, CEO Jensen Huang spoke during the company’s annual event of the company and has boldly predicts that the total Addressable Data Center (TAM) will exceed $ 1 Billion by 2028. The company has been the main actor of the GPUs, it could therefore probably convert a lot, if not all of this market in terms of income. Since the income from the NVIDIA data center have totaled $ 115 billion in the past 12 months, this prediction involves much more growth.
But is it an unreasonable prediction? I don’t think. During its fourth quarter of the 2025 financial year (completed on January 26), the activity of the Nvidia data center increased its income at a rate of 93%. For the Data Center divisions to reach $ 1 Billion in income by 2028, they should grow at an annual rate made up of 72%. Thus, Huang’s daring projection shows a moderate slowdown in today’s growth in today, but always a ridiculous rhythm overall.
It will be a key figure to monitor in the quarters reported throughout 2025. If its growth trends in the lower data center and approach this pace of 70%, it will be clear that Nvidia will probably not reach its projection of $ 1 Billion. But if it remains high in the 80% to 90% range, it could have a shot to reach its high income target of $ 1 Billion.
The objective of 1 dollars billion can be a little high, but investors should always understand that GPU demand is not going. With high demand continuing, this should reassure investors.
The stock seems inexpensive in light of mass growth
Now, with the stock decreasing about 20% of its top of all time, this is the ideal time to look for shares. After the sale, he is now negotiating near the lowest levels he has seen in recent years.
NVDA PE ratio (forward) data by Ycharts.
The stock looks like an absolute flight to 26 times income in the long term; Many large technological companies are still negotiated much higher than that despite very worse growth prospects. Considering that the S&P 500 Exchanges for 21 times the profits in the long term, you do not have to pay a lot of bonus to have one of the largest growth stocks of our time.
Even if Nvidia is below his high projection of $ 1 Billion, he will always set up monster growth, thanks to the enormous expenses of AI hyperscales. I think that Nvidia’s actions are just beginning, and with the actions on sale, now makes a Excellent time to enjoy it.